Whether you are new to investing, or simply want to expand your portfolio, the current Protected Equity Bond offers a way to benefit from potential stock market linked growth whilst minimising the risks of direct stock market investment.
Key benefits
Potential for 100% of any growth in the FTSE 100 Index, subject to final year averaging, up to a maximum 51% growth on your original investment (7.10% gross p.a./AER*)
6 year term
Tax free cash ISA option available
Invest from £3,000 (£3,600 cash ISA option )
No withdrawals from the Deposit Plan
Although you can access funds held in the ISA, you must hold your original investment for the full 6 years with no withdrawals to benefit from the stated returns.
View the full account details
What is the Protected Equity Bond?
The current Protected Equity Bond is a 6 year fixed term deposit plan linked to the performance of the FTSE 100 Index.
The current Protected Equity Bond available is the Legal & General Stock Market Linked Savings Bond 14 (The Plan). The Plan is designed to return at the end of the 6 year term, your original investment plus 100% of any growth in the FTSE 100 Index, subject to final year averaging, up to a maximum return of 51% of your original investment. To benefit, all you have to do is ensure your original investment amount is held to the end of the 6 year term with no withdrawals.
During the fixed term, Legal & General place your funds with Nationwide, as the deposit taker. This means that from the investment start date through to maturity we will be helping to look after your money. Before the start date and after the fixed term, Legal & General put your money in a client bank account separate from their own money. For full details of where your money is held before and after the 6 year fixed term, please refer to the Key Features and Terms & Conditions Document.
If the original investment is not held for the full 6 year term the final amount returned may be less than the original investment. The value of your investment may depreciate in real terms due to inflation. If Nationwide Building Society, or the bank or building society providing the Legal & General client bank account were to become insolvent you may lose some or all of your money.
What does protected mean?
The Plan is designed to return your original investment in full at maturity, protecting you if the FTSE 100 Index has fallen in value. Please note you won’t benefit from any dividend income which you could have received if you’d invested directly in shares or investment funds.
Tax-free returns
The Plan is available as both deposit and cash ISA options. Within the ISA you can invest your cash ISA allowance for the current tax year and you will receive any returns tax free. You can also transfer your cash ISAs from previous tax years including those held with other providers without it counting towards your annual allowance.
It is important to remember that subject to the investment limits, you can only subscribe with one cash ISA provider and one stocks and shares ISA provider per year. However, if you have already used your cash ISA allowance or choose not to invest in the ISA, you can always open a Deposit Plan (not tax-free)
Limited availability
The Protected Equity Bond closes on 10 March 2012, and may be closed earlier if oversubscribed.
How to Apply
To apply for the Protected Equity Bond please visit your nearest Dunfermline branch.
Key dates:
Offer available: 23 January 2012 to 10 March 2012
Investment start date: 29 March 2012
Maturity date: 29 March 2018
Notes
* AER stands for Annual Equivalent Rate which illustrates what the interest rate would be if interest was paid and compounded once each year. For the Protected Equity Bond this allows you to compare any minimum and maximum potential returns with other savings products. The gross rate of interest is the interest rate payable before any income tax is deducted (if you pay tax) and the net rate of interest is the interest payable after any income tax is deducted (if you pay tax)
Tax treatment is dependent on individual circumstances. The tax information in this brochure is based on our understanding of current law and HM Revenue & Customs practise which can change.